SoundCloud might only have 24 hours to live
Uh oh...
The entire future of SoundCloud reportedly hinges on one vote over the next 24 hours.
According to a report published by Digital Music News, investors are due to vote on rescue funding today with a ‘no’ vote ending the music streaming platform.
A no vote is a big possibility because rescue investors Raine Group and Temasek would get preferential treatment over current investors who would have a harder time recovering their money.
SoundCloud’s current pre-money valuation is $150 million a sharp decline from its previous valuation of $700 million, and it is currently asking for $170 million to keep the website alive.
According to Recode, if new funding is found then current SoundCloud CEO Alex Ljung would be replaced by former Vimeo CEO Kerry Trainor.
SoundCloud had to lay off 40 per cent of its staff last month after running into money issues.
Louis Anderson-Rich is Mixmag’s Digital Intern. Follow him on Twitter
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